Big Data is part to Industry Relation 4.0 and it is imperative to the accounting system. List and briefly explain TEN(10) of its benefits towards an Accounting Information System. (50marks)

How Industry 4.0 will change accounting Lea Hart September 25, 2017 History class teaches us about the Industrial Revolution of the late 18 th century, when steam power revolutionized industry. But some may not realize this wasn't our only industrial revolution. The second revolution occurred in the 19th century, when electricity and assembly lines led to mass production, and a third in the 1960 s, when advances in computing allowed us to program machines and networks. Today, we are on the verge of a fourth industrial revolution, dubbed Industry 4.0. "Industry 4.0 is the next evolution of automating processes, making them smarter and better," said Brian Heckler, CPA, U.S. leader of KPMG's Industrial Manufacturing Sector. So just what does that mean? And why should CPAs care? Heckler and others discuss Industry 4.0, the financial impact across industries, and why CPAs need to prepare for those changes. "The most important thing is just being on top of this," said C.J. Skender, clinical professor of accounting at the University of North Carolina's Kenan-Flagler Business School. "If you're not on top of it, you're falling behind, and then somebody takes their business elsewhere." What is Industry 4.0 ? Industry 4.0 began in Germany several years ago as a strategic initiative to provide advanced manufacturing solutions, Skender said. To fully understand Industry 4.0, it's important to understand the internet of things, said Walter Merkas, senior manaqer in WithumSmith+Brown's cloud solutions and management consulting practice. The internet of things includes anything with an on-off switch that's connected to the internet and/or other internet-enabled devices, as this article from Forbes explains. It includes devices such as computers and cellphones but also things like coffee makers and parts of machinery. The internet of things and that communication between devices is part of what's made Industry 4.0 possible, Merkas said. KPMG's 2016 report The Factory of the Future describes Industry 4.0 as the full integration of information and communication technology and automation technology in the "factory of the future." Everything in the factory is on a network that also includes sales partners, suppliers, equipment manufacturers, and clients, the report said. The results will be numerous. Devices will not only communicate, but also use information and data analysis to drive future actions, according to Deloitte. One such result will be the evolution of the "digital twin" in manufacturing. which allows new ways to optimize product design and functionality, Heckler said. Using artificial intelligence, machine learning, advanced analytics, and more, companies will be able to build a product in the digital world that allows more advanced views and smarter design than ever before. This allows companies to do more rapid prototyping than with physical products, experiment with new designs at a lower cost, and improve communication with the extended supply chain. Deloitte also points to decreases in downtime on the production floor, ensuring manufacturers never start work that can't be finished with the materials and labor on hand and providing an opportunity for manufacturers to grow new sources of revenue, such as a data business that can become as large as their product business. Merkas shared a specific example of how manufacturers might sell data in addition to products: A tractor manufacturer builds a tractor that can transmit data. The tractor tracks a farmer's seed and fertilizer habits, which the tractor manufacturer can sell to seed and fertilizer companies, which can in turn market their products to individual farmers based on their particular usage and needs. "It may be that they sell more data than tractors," Merkas said. Excerpt of article taken from: htps://www.joumalofaccountancy.cominewsletters/2017/sep/industry-4-0change-accounting.htrr